South Korean stocks plunged on Tuesday, and chipmakers and other tech shares slumped, amid fading hopes of a U.S. interest rate cut and persistent concerns about valuations in the artificial intelligence sector.

The benchmark Korea Composite Stock Price Index(KOSPI) lost 135-point-63 points, or three-point-32 percent, to close at three-thousand-953-point-62. The main bourse closed below the four-thousand mark for the first time since November 7.

Trade volume was moderate, with three-hundred-17-point-62 million shares trading at a value of 13-point-98 trillion won, or nine-point-54 billion U.S. dollars. However, decliners outnumbered gainers 817 to 83.

The KOSPI opened lower, mirroring overnight losses on Wall Street, and extended losses on heavy institutional and foreign selling.

Tech stocks led the decline, with Samsung Electronics and SK hynix plummeting two-point-78 percent and five-point-94 percent, respectively.

Automaker Hyundai Motor dropped two-point-58 percent, and its affiliate Kia shed two-point-47 percent.

Battery makers also retreated, with LG Energy Solution down four-point-32 percent and LG Chem slipping three-point-48 percent.

Nuclear power plant manufacturer Doosan Enerbility lost four-point-31 percent, and defense giant Hanwha Aerospace tumbled five-point-92 percent.

Shipbuilder Hanwha Ocean retreated two-point-37 percent.

The tech-heavy KOSDAQ fell 23-point-97 points, or two-point-66 percent, to close at 878-point-70.

The South Korean won weakened against the U.S. dollar by seven-point-three won, trading at one-thousand-465-point-three won as of 3:30 p.m.